3Q22 operating income doubles YoY; 22/28 revenue contribution reaches 25%
Third Quarter 2022 Overview1:
- Revenue: NT$75.39 billion (US$2.38 billion)
- Gross margin: 47.3%; Operating margin: 40.0%
- Revenue from 22/28nm: 25%
- Capacity utilization rate: 100%+
- Net income attributable to shareholders of the parent: NT$27 billion (US$851 million)
- Earnings per share: NT$2.19; earnings per ADS: US$0.345
United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the third quarter of 2022.
Third quarter consolidated revenue was NT$75.39 billion, increasing 4.6% QoQ from NT$72.06 billion in 2Q22. Compared to a year ago, 3Q22 revenue grew 34.9% YoY from NT$55.91 billion in 3Q21. Consolidated gross margin for 3Q22 reached 47.3%. Net income attributable to the shareholders of the parent was NT$27 billion, with earnings per ordinary share of NT$2.19.
Jason Wang, co-president of UMC, said, “In the third quarter, our results benefited from product mix optimization and a more favorable exchange rate, while fab capacity remained fully utilized. Despite softening demand in consumer end markets, strengths in certain wireless communications areas drove further expansion in our 22/28nm business, which accounted for 25% of overall third-quarter revenue and lifted wafer average selling price. We believe our industry-leading position in OLED display driver ICs will continue to drive growth for our 22/28nm technologies amid growing adoption of OLED panels in smartphones and other end devices. We also saw sustained momentum in our automotive business during the quarter, and we intend to pursue more collaboration opportunities with existing and potential automotive customers.”
Co-president Wang said, “Moving into the fourth quarter, we expect to face headwinds amid demand weakness, impacted by factors including the inflationary environment and Ukraine war. While UMC will not be immune to the inventory correction affecting the industry, we will work closely with our customers as they adjust to current market conditions. At the same time, we will continue to deliver differentiated technology processes to enable customers’ product pipelines. We have revised the company’s 2022 capital expenditure down to US$3 billion, but our capacity expansions in Tainan and Singapore are still progressing as planned in order to meet long-term supply commitments. Despite near-term turbulences, the structural story of increasing silicon content driven by the rise of 5G, AIoT, and EV remains intact. With our comprehensive technology offering, focus on manufacturing excellence, and resilient financial structure, UMC will further increase our exposure to strong growth markets and consolidate our specialty technology leadership.”
Co-president Wang added, “In terms of corporate sustainability, UMC made steady progress towards our goals across all three areas of ESG. Going into 2023, we will accelerate carbon emissions reduction efforts by proactively seeking ways to lower emissions associated with wafer manufacturing and products footprint, working with partners to address emissions from the value chain, as well as investing in net-zero technologies as we strive for net zero by 2050.”
Summary of Operating Results
Operating Results |
|||||||||||||||
(Amount: NT$ million) |
3Q22 |
|
2Q22 |
|
QoQ %
|
3Q21 |
|
YoY %
|
|||||||
Operating Revenues |
75,392 |
|
72,055 |
|
4.6 |
|
55,907 |
|
34.9 |
|
|||||
Gross Profit |
35,664 |
|
33,472 |
|
6.5 |
|
20,544 |
|
73.6 |
|
|||||
Operating Expenses |
(6,794 |
) |
(6,706 |
) |
1.3 |
|
(6,636 |
) |
2.4 |
|
|||||
Net Other Operating Income and Expenses |
1,287 |
|
1,398 |
|
(8.0 |
) |
1,227 |
|
4.9 |
|
|||||
Operating Income |
30,157 |
|
28,164 |
|
7.1 |
|
15,135 |
|
99.3 |
|
|||||
Net Non-Operating Income and Expenses |
2,189 |
|
(2,586 |
) |
- |
|
4,317 |
|
(49.3 |
) |
|||||
Net Income Attributable to Shareholders of the Parent |
26,996 |
|
21,327 |
|
26.6 |
|
17,460 |
|
54.6 |
|
|||||
EPS (NT$ per share) |
2.19 |
|
1.74 |
|
|
1.43 |
|
|
|||||||
(US$ per ADS) |
0.345 |
|
0.274 |
|
|
0.225 |
|
|
|||||||
Third quarter operating revenues increased by 4.6% sequentially to NT$75.39 billion which was partially lifted due to a better product mix as well as favorable foreign exchange rate. Revenue contribution from 40nm and below technologies represented 42% of wafer revenue. Gross profit grew 6.5% QoQ to NT$35.66 billion, or 47.3% of revenue. Operating expenses grew 1.3% to NT$6.79 billion. Net other operating income declined to NT$1.29 billion. Net non-operating income totaled NT$2.19 billion. Net income attributable to shareholders of the parent amounted to NT$27 billion.
Earnings per ordinary share for the quarter was NT$2.19. Earnings per ADS was US$0.345. The basic weighted average number of outstanding shares in 3Q22 was 12,305,516,644, compared with 12,283,479,334 shares in 2Q22 and 12,206,292,756 shares in 3Q21. The diluted weighted average number of outstanding shares was 12,635,661,561 in 3Q22, compared with 12,553,373,552 shares in 2Q22 and 12,411,100,649 shares in 3Q21. The fully diluted shares counted on September 30, 2022 were approximately 12,679,025,000.
Detailed Financials Section
Operating revenues increased to NT$75.39 billion. COGS increased 3.0% to NT$39.73 billion, which included 3.9% sequential increase in other manufacturing costs. Gross profit grew 6.5% QoQ to NT$35.66 billion. Operating expenses increased 1.3% QoQ to NT$6.79 billion, as Sales & Marketing grew 15.9% to NT$1.06 billion while R&D was up 3.0% QoQ to NT$3.30 billion, representing 4.4% of revenue. Net other operating income was NT$1.29 billion. In 3Q22, operating income grew 7.1% QoQ to NT$30.16 billion.
COGS & Expenses |
||||||||||
(Amount: NT$ million) |
3Q22 |
2Q22 |
QoQ %
|
3Q21 |
YoY %
|
|||||
Operating Revenues |
75,392 |
72,055 |
4.6 |
55,907 |
34.9 |
|||||
COGS |
(39,728) |
(38,583) |
3.0 |
(35,363) |
12.3 |
|||||
Depreciation |
(9,622) |
(9,616) |
0.1 |
(9,900) |
(2.8) |
|||||
Other Mfg. Costs |
(30,106) |
(28,967) |
3.9 |
(25,463) |
18.2 |
|||||
Gross Profit |
35,664 |
33,472 |
6.5 |
20,544 |
73.6 |
|||||
Gross Margin (%) |
47.3% |
46.5% |
|
36.8% |
|
|||||
Operating Expenses |
(6,794) |
(6,706) |
1.3 |
(6,636) |
2.4 |
|||||
G&A |
(2,428) |
(2,579) |
(5.9) |
(2,119) |
14.6 |
|||||
Sales & Marketing |
(1,061) |
(915) |
15.9 |
(1,212) |
(12.5) |
|||||
R&D |
(3,304) |
(3,209) |
3.0 |
(3,303) |
0.0 |
|||||
Expected Credit
|
(1) |
(3) |
(75.8) |
(2) |
(68.6) |
|||||
Net Other Operating
|
1,287 |
1,398 |
(8.0) |
1,227 |
4.9 |
|||||
Operating Income |
30,157 |
28,164 |
7.1 |
15,135 |
99.3 |
|||||
Net non-operating income in 3Q22 was NT$2.19 billion, primarily reflecting NT$1.29 billion in exchange gain and a NT$0.78 billion in net investment gain.
Non-Operating Income and Expenses |
||||||
(Amount: NT$ million) |
3Q22 |
2Q22 |
3Q21 |
|||
Non-Operating Income and Expenses |
2,189 |
(2,586) |
4,317 |
|||
Net Interest Income and Expenses |
139 |
(163) |
(367) |
|||
Net Investment Gain and Loss |
780 |
(3,675) |
4,534 |
|||
Exchange Gain and Loss |
1,293 |
1,361 |
164 |
|||
Other Gain and Loss |
(23) |
(109) |
(14) |
|||
In 3Q22, cash inflow from operating activities was NT$39.70 billion. Cash outflow from investing activities amounted to NT$21.42 billion, which included NT$23.13 billion in capital expenditure, resulting in free cash flow of NT$16.56 billion. Cash outflow from financing reached NT$26.69 billion, primarily from a NT$37.45 billion payment as cash distributed from additional paid- in capital partially offset by a NT$14.44 billion from the increase in deposits-in. Net cash outflow in 3Q22 totaled NT$3.07 billion. Over the next 12 months, the company expects to repay NT$ 4.43 billion in bank loans.
| Cash Flow Summary | ||||||
(Amount: NT$ million) |
For the 3-Month
Sep.30, 2022 |
For the 3-Month
|
||||
Cash Flow from Operating Activities |
39,696 |
|
35,091 |
|
||
Net income before tax |
32,346 |
|
25,578 |
|
||
Depreciation & Amortization |
11,195 |
|
11,107 |
|
||
Share of loss (profit) of associates and joint ventures |
(328 |
) |
2,027 |
|
||
Income tax paid |
(652 |
) |
(2,913 |
) |
||
Changes in working capital & others |
(2,865 |
) |
(708 |
) |
||
Cash Flow from Investing Activities |
(21,419 |
) |
(11,716 |
) |
||
Decrease in financial assets measured at amortized cost |
2,070 |
|
103 |
|
||
Acquisition of PP&E |
(22,466 |
) |
(10,907 |
) |
||
Acquisition of intangible assets |
(1,080 |
) |
(815 |
) |
||
Others |
57 |
|
(97 |
) |
||
Cash Flow from Financing Activities |
(26,688 |
) |
(13,423 |
) |
||
Bank loans |
(473 |
) |
(11,615 |
) |
||
Redemption of bonds |
(1,031 |
) |
(2,484 |
) |
||
Increase in deposits-in |
14,441 |
|
864 |
|
||
Cash distributed from additional paid-
|
(37,446 |
) |
- |
|
||
Others |
(2,179 |
) |
(188 |
) |
||
Effect of Exchange Rate |
5,337 |
|
1,601 |
|
||
Net Cash Flow |
(3,074 |
) |
11,553 |
|
||
Beginning balance |
183,723 |
|
172,170 |
|
||
Ending balance |
180,649 |
|
183,723 |
|||
Cash and cash equivalents slightly decreased to NT$180.65 billion. Days of inventory increased by 4 days to 66 days.
Current Assets |
||||||
(Amount: NT$ billion) |
3Q22 |
2Q22 |
3Q21 |
|||
Cash and Cash Equivalents |
180.65 |
183.72 |
113.11 |
|||
Notes & Accounts Receivable |
44.84 |
42.88 |
32.99 |
|||
Days Sales Outstanding |
53 |
51 |
51 |
|||
Inventories, net |
30.10 |
27.34 |
23.15 |
|||
Days of Inventory |
66 |
62 |
59 |
|||
Total Current Assets |
266.95 |
265.78 |
211.60 |
|||
Current liabilities decreased to NT$108.01 billion, mainly from the reduction of in other as company distributed cash from additional paid-in capital to shareholders during Q3. Long-term credit/bonds increased to NT$46.15 billion. Total liabilities decreased to NT$204.21 billion, leading to a debt to equity ratio of 65%.
Liabilities |
|||||||||
(Amount: NT$ billion) |
3Q22 |
2Q22 |
3Q21 |
||||||
Total Current Liabilities |
108.01 |
|
131.81 |
|
84.55 |
|
|||
Notes & Accounts Payable |
10.04 |
|
9.95 |
|
8.26 |
|
|||
Short-Term Credit / Bonds |
12.19 |
|
13.22 |
|
24.26 |
|
|||
Payables on Equipment |
19.40 |
|
11.60 |
|
6.72 |
|
|||
Other |
66.38 |
|
97.04 |
|
45.31 |
|
|||
Long-Term Credit / Bonds |
46.15 |
|
45.70 |
|
51.09 |
|
|||
Long-Term Investment Liabilities |
4.26 |
|
8.50 |
|
8.14 |
|
|||
Total Liabilities |
204.21 |
|
216.51 |
|
171.19 |
|
|||
Debt to Equity |
65 |
% |
76 |
% |
66 |
% |
|||
Analysis of Revenue2
Revenue from Asia-Pacific declined to 62% while business from North America was 23% of sales. Business from Europe was 9% while contribution from Japan increased to 6%.
Revenue Breakdown by Region |
|||||||||||||||
Region |
3Q22 |
|
2Q22 |
|
1Q22 |
|
4Q21 |
|
3Q21 |
|
|||||
North America |
23 |
% |
22 |
% |
22 |
% |
21 |
% |
22 |
% |
|||||
Asia Pacific |
62 |
% |
65 |
% |
64 |
% |
66 |
% |
65 |
% |
|||||
Europe |
9 |
% |
8 |
% |
8 |
% |
7 |
% |
7 |
% |
|||||
Japan |
6 |
% |
5 |
% |
6 |
% |
6 |
% |
6 |
% |
|||||
Revenue contribution from 22/28nm grew to 25% of the wafer revenue, while 40nm contribution was 17% of sales.
Revenue Breakdown by Geometry |
|||||||||||||||
Geometry |
3Q22 |
|
2Q22 |
|
1Q22 |
|
4Q21 |
|
3Q21 |
|
|||||
14nm and below |
0 |
% |
0 |
% |
0 |
% |
0 |
% |
0 |
% |
|||||
14nm<x<=28nm |
25 |
% |
22 |
% |
20 |
% |
20 |
% |
19 |
% |
|||||
28nm<x<=40nm |
17 |
% |
18 |
% |
18 |
% |
18 |
% |
18 |
% |
|||||
40nm<x<=65nm |
18 |
% |
19 |
% |
19 |
% |
19 |
% |
19 |
% |
|||||
65nm<x<=90nm |
8 |
% |
7 |
% |
8 |
% |
8 |
% |
8 |
% |
|||||
90nm<x<=0.13um |
12 |
% |
12 |
% |
12 |
% |
12 |
% |
12 |
% |
|||||
0.13um<x<=0.18um |
10 |
% |
12 |
% |
13 |
% |
13 |
% |
13 |
% |
|||||
0.18um<x<=0.35um |
8 |
% |
8 |
% |
7 |
% |
7 |
% |
8 |
% |
|||||
0.5um and above |
2 |
% |
2 |
% |
3 |
% |
3 |
% |
3 |
% |
|||||
Revenue from fabless customers accounted for 83% of revenue.
Revenue Breakdown by Customer Type |
|||||||||||||||
Customer Type |
3Q22 |
|
2Q22 |
|
1Q22 |
|
4Q21 |
|
3Q21 |
|
|||||
Fabless |
83 |
% |
86 |
% |
87 |
% |
86 |
% |
86 |
% |
|||||
IDM |
17 |
% |
14 |
% |
13 |
% |
14 |
% |
14 |
% |
|||||
Revenue from the communication segment represented 45%, while business from computer applications decreased to 14%. Business from consumer applications was 27% as other segments increased to 14% of revenue.
Revenue Breakdown by Application (1) |
|||||||||||||||
Application |
3Q22 |
|
2Q22 |
|
1Q22 |
|
4Q21 |
|
3Q21 |
|
|||||
Computer |
14 |
% |
16 |
% |
17 |
% |
17 |
% |
17 |
% |
|||||
Communication |
45 |
% |
45 |
% |
45 |
% |
46 |
% |
46 |
% |
|||||
Consumer |
27 |
% |
27 |
% |
26 |
% |
26 |
% |
27 |
% |
|||||
Others |
14 |
% |
12 |
% |
12 |
% |
11 |
% |
10 |
% |
|||||
(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset, WLAN. Communication consists of handset components, broadband, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc. |
Blended ASP Trend
Blended average selling price (ASP) grew in 3Q22.
(To view blended ASP trend, please click here for 3Q22 ASP)
Shipment and Utilization Rate3
Wafer shipments decreased 1% QoQ to 2,597K in the third quarter, while quarterly capacity grew to 2,539K. Overall utilization rate in 3Q22 remained above 100%.
Wafer Shipments |
|||||
|
3Q22 |
2Q22 |
1Q22 |
4Q21 |
3Q21 |
Wafer Shipments
|
2,597 |
2,622 |
2,513 |
2,546 |
2,503 |
|
|||||
Quarterly Capacity Utilization Rate |
|||||
|
3Q22 |
2Q22 |
1Q22 |
4Q21 |
3Q21 |
Utilization Rate |
100%+ |
100%+ |
100%+ |
100%+ |
100%+ |
Total Capacity
|
2,539 |
2,528 |
2,420 |
2,419 |
2,383 |
Capacity4
Overall capacity in the third quarter increased to 2,539K 8-inch equivalent wafers. Capacity will grow in the fourth quarter of 2022 to 2,543K 8-inch equivalent wafers, reflecting the capacity expansion taking place at 8N.
Annual Capacity in
|
|
Quarterly Capacity in
|
||||||||||||||||||||||
FAB |
Geometry
|
2021 |
2020 |
2019 |
2018 |
|
FAB |
4Q22E |
3Q22 |
2Q22 |
1Q22 |
|||||||||||||
WTK |
6" |
5 – 0.15 |
329 |
371 |
370 |
396 |
|
WTK |
6" |
85 |
85 |
84 |
82 |
|||||||||||
8A |
8" |
3 – 0.11 |
755 |
802 |
825 |
825 |
|
8A |
8" |
192 |
192 |
192 |
189 |
|||||||||||
8C |
8" |
0.35 – 0.11 |
459 |
452 |
436 |
383 |
|
8C |
8" |
115 |
115 |
115 |
113 |
|||||||||||
8D |
8" |
0.18 – 0.09 |
380 |
371 |
359 |
347 |
|
8D |
8" |
103 |
103 |
103 |
101 |
|||||||||||
8E |
8" |
0.6 – 0.14 |
457 |
449 |
426 |
418 |
|
8E |
8" |
118 |
118 |
118 |
116 |
|||||||||||
8F |
8" |
0.18 – 0.11 |
514 |
485 |
434 |
431 |
|
8F |
8" |
138 |
138 |
138 |
136 |
|||||||||||
8S |
8" |
0.18 – 0.11 |
408 |
373 |
372 |
372 |
|
8S |
8" |
111 |
111 |
111 |
109 |
|||||||||||
8N |
8" |
0.5 – 0.11 |
917 |
917 |
831 |
771 |
|
8N |
8" |
245 |
242 |
235 |
231 |
|||||||||||
12A |
12" |
0.13 – 0.014 |
1,070 |
1,044 |
997 |
997 |
|
12A |
12" |
301 |
301 |
301 |
267 |
|||||||||||
12i |
12" |
0.13 – 0.040 |
641 |
628 |
595 |
555 |
|
12i |
12" |
164 |
164 |
164 |
162 |
|||||||||||
12X |
12" |
0.080 – 0.022 |
284 |
217 |
203 |
183 |
|
12X |
12" |
80 |
80 |
78 |
77 |
|||||||||||
12M |
12" |
0.13 – 0.040 |
395 |
391 |
98 |
- |
|
12M |
12" |
110 |
110 |
110 |
108 |
|||||||||||
Total(1) |
9,453 |
9,188 |
8,148 |
7,673 |
|
Total |
2,543 |
2,539 |
2,528 |
2,420 |
||||||||||||||
YoY Growth Rate |
3% |
13% |
6% |
5% |
|
|
|
|
|
|
||||||||||||||
(1) One 6-inch wafer is converted into 0.5625 (62/82) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25 (122/82) 8-inch equivalent wafers. Total capacity figures are expressed in 8-inch equivalent wafers.
CAPEX
CAPEX spending in 3Q22 totaled US$764 million. 2022 cash-based CAPEX budget will be US$3.0 billion.
| Capital Expenditure by Year - in US$ billion | ||||||||||
Year |
2021 |
2020 |
2019 |
2018 |
2017 |
|||||
CAPEX |
$ 1.8 |
$ 1.0 |
$ 0.6 |
$ 0.7 |
$ 1.4 |
|||||
2022 CAPEX Plan |
||||||
8" |
12" |
Total |
||||
10% |
90% |
US$3.0 billion |
||||
Fourth Quarter 2022 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: To decrease by approximately 10%
- ASP in USD: To remain flat
- Gross Profit Margin: Will be in the low-40% range
- Capacity Utilization: 90%
- 2022 CAPEX: US$3.0 billion
Recent Developments / Announcements
Aug. 24, 2022 |
UMC and Cadence Collaborate on Analog/Mixed-Signal Flow for 22ULP/ULL Process Technologies |
|
Sep. 13, 2022 |
Please visit UMC’s website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, October 26, 2022
Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)
Dial-in numbers and Access Codes: |
|
USA Toll Free: |
1-866 836-0101 |
Taiwan Number: |
02-2192-8016 |
Other Areas: |
+886-2-2192-8016 |
|
|
Access Code: |
UMC |
A live webcast and replay of the 3Q22 results announcement will be available at www.umc.com under the “Investors / Events” section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry. The company provides high quality IC production with a focus on both logic and specialty technologies to serve every major sector of the electronics industry. UMC’s comprehensive technology and manufacturing solutions include logic/RF, embedded high voltage, embedded flash, RFSOI/BCD and IATF-16949 automotive manufacturing certification for all its manufacturing facilities. UMC operates 12 fabs that are strategically located throughout Asia with a maximum capacity of approximately 850,000 8-inch equivalent wafers per month. The company employs approximately 20,000 people worldwide, with offices in Taiwan, China, United States, Europe, Japan, Korea and Singapore. For more information, please visit: http://www.umc.com.
Safe Harbor Statements
This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding anticipated financial results for the third quarter of 2022; the expected wafer shipment and ASP; the anticipated annual budget; capex strategies; environmental protection goals and water management strategies; impact of foreign currency exchange rates; expected foundry capacities; the ability to obtain new business opportunities; and information under the heading “Third Quarter of 2022 Outlook and Guidance.”
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including natural disasters, terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risk factors is included in UMC’s filings with the United States Securities and Exchange Commission, including its Annual Report on Form 20-F. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
The financial statements included in this release are prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States.
- FINANCIAL TABLES TO FOLLOW -
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||||
| Consolidated Condensed Balance Sheet | ||||||
| As of September 30, 2022 | ||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||||
September 30, 2022 |
||||||
US$ |
NT$ |
% |
||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 5,692 |
180,649 |
34.8 |
% |
||
| Accounts receivable, net | 1,413 |
44,842 |
8.6 |
% |
||
| Inventories, net | 948 |
30,102 |
5.8 |
% |
||
| Other current assets | 357 |
11,352 |
2.2 |
% |
||
| Total current assets | 8,410 |
266,945 |
51.4 |
% |
||
| Non-current assets | ||||||
| Funds and investments | 1,951 |
61,938 |
11.9 |
% |
||
| Property, plant and equipment | 4,698 |
149,119 |
28.7 |
% |
||
| Right-of-use assets | 249 |
7,903 |
1.5 |
% |
||
| Other non-current assets | 1,056 |
33,489 |
6.5 |
% |
||
| Total non-current assets | 7,954 |
252,449 |
48.6 |
% |
||
| Total assets | 16,364 |
519,394 |
100.0 |
% |
||
| Liabilities | ||||||
| Current liabilities | ||||||
| Short-term loans | 7 |
217 |
0.0 |
% |
||
| Payables | 2,155 |
68,415 |
13.2 |
% |
||
| Current portion of long-term liabilities | 377 |
11,975 |
2.3 |
% |
||
| Other current liabilities | 864 |
27,402 |
5.3 |
% |
||
| Total current liabilities | 3,403 |
108,009 |
20.8 |
% |
||
| Non-current liabilities | ||||||
| Bonds payable | 727 |
23,082 |
4.4 |
% |
||
| Long-term loans | 727 |
23,063 |
4.4 |
% |
||
| Lease liabilities, noncurrent | 166 |
5,284 |
1.0 |
% |
||
| Other non-current liabilities | 1,411 |
44,767 |
8.7 |
% |
||
| Total non-current liabilities | 3,031 |
96,196 |
18.5 |
% |
||
| Total liabilities | 6,434 |
204,205 |
39.3 |
% |
||
| Equity | ||||||
| Equity attributable to the parent company | ||||||
| Capital | 3,933 |
124,821 |
24.0 |
% |
||
| Additional paid-in capital | 336 |
10,668 |
2.1 |
% |
||
| Retained earnings and other components of equity | 5,649 |
179,321 |
34.5 |
% |
||
| Total equity attributable to the parent company | 9,918 |
314,810 |
60.6 |
% |
||
| Non-controlling interests | 12 |
379 |
0.1 |
% |
||
| Total equity | 9,930 |
315,189 |
60.7 |
% |
||
| Total liabilities and equity | 16,364 |
519,394 |
100.0 |
% |
||
| Note：New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2022 exchange rate of NT $31.74 per U.S. Dollar. | ||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||||||||||||||
Year over Year Comparison |
Quarter over Quarter Comparison |
||||||||||||||||||||||||||||
Three-Month Period Ended |
Three-Month Period Ended |
||||||||||||||||||||||||||||
September 30, 2022 |
September 30, 2021 |
Chg. |
September 30, 2022 |
June 30, 2022 |
Chg. |
||||||||||||||||||||||||
US$ |
NT$ |
US$ |
NT$ |
% |
US$ |
NT$ |
US$ |
NT$ |
% |
||||||||||||||||||||
| Operating revenues | 2,375 |
|
75,392 |
|
1,761 |
|
55,907 |
|
34.9 |
% |
2,375 |
|
75,392 |
|
2,270 |
|
72,055 |
|
4.6 |
% |
|||||||||
| Operating costs | (1,251 |
) |
(39,728 |
) |
(1,114 |
) |
(35,363 |
) |
12.3 |
% |
(1,251 |
) |
(39,728 |
) |
(1,215 |
) |
(38,583 |
) |
3.0 |
% |
|||||||||
| Gross profit | 1,124 |
|
35,664 |
|
647 |
|
20,544 |
|
73.6 |
% |
1,124 |
|
35,664 |
|
1,055 |
|
33,472 |
|
6.5 |
% |
|||||||||
47.3 |
% |
47.3 |
% |
36.8 |
% |
36.8 |
% |
47.3 |
% |
47.3 |
% |
46.5 |
% |
46.5 |
% |
||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| - Sales and marketing expenses | (33 |
) |
(1,061 |
) |
(38 |
) |
(1,212 |
) |
(12.5 |
%) |
(33 |
) |
(1,061 |
) |
(29 |
) |
(915 |
) |
15.9 |
% |
|||||||||
| - General and administrative expenses | (77 |
) |
(2,428 |
) |
(67 |
) |
(2,119 |
) |
14.6 |
% |
(77 |
) |
(2,428 |
) |
(82 |
) |
(2,579 |
) |
(5.9 |
%) |
|||||||||
| - Research and development expenses | (104 |
) |
(3,304 |
) |
(104 |
) |
(3,303 |
) |
0.0 |
% |
(104 |
) |
(3,304 |
) |
(101 |
) |
(3,209 |
) |
3.0 |
% |
|||||||||
| - Expected credit impairment loss | (0 |
) |
(1 |
) |
(0 |
) |
(2 |
) |
(68.6 |
%) |
(0 |
) |
(1 |
) |
(0 |
) |
(3 |
) |
(75.8 |
%) |
|||||||||
| Subtotal | (214 |
) |
(6,794 |
) |
(209 |
) |
(6,636 |
) |
2.4 |
% |
(214 |
) |
(6,794 |
) |
(212 |
) |
(6,706 |
) |
1.3 |
% |
|||||||||
| Net other operating income and expenses | 40 |
|
1,287 |
|
39 |
|
1,227 |
|
4.9 |
% |
40 |
|
1,287 |
|
44 |
|
1,398 |
|
(8.0 |
%) |
|||||||||
| Operating income | 950 |
|
30,157 |
|
477 |
|
15,135 |
|
99.3 |
% |
950 |
|
30,157 |
|
887 |
|
28,164 |
|
7.1 |
% |
|||||||||
40.0 |
% |
40.0 |
% |
27.1 |
% |
27.1 |
% |
40.0 |
% |
40.0 |
% |
39.1 |
% |
39.1 |
% |
||||||||||||||
| Net non-operating income and expenses | 69 |
|
2,189 |
|
136 |
|
4,317 |
|
(49.3 |
%) |
69 |
|
2,189 |
|
(81 |
) |
(2,586 |
) |
- |
|
|||||||||
| Income from continuing operations before income tax |
1,019 |
|
32,346 |
|
613 |
|
19,452 |
|
66.3 |
% |
1,019 |
|
32,346 |
|
806 |
|
25,578 |
|
26.5 |
% |
|||||||||
42.9 |
% |
42.9 |
% |
34.8 |
% |
34.8 |
% |
42.9 |
% |
42.9 |
% |
35.5 |
% |
35.5 |
% |
||||||||||||||
| Income tax expense | (158 |
) |
(5,004 |
) |
(66 |
) |
(2,100 |
) |
138.3 |
% |
(158 |
) |
(5,004 |
) |
(129 |
) |
(4,088 |
) |
22.4 |
% |
|||||||||
| Net income | 861 |
|
27,342 |
|
547 |
|
17,352 |
|
57.6 |
% |
861 |
|
27,342 |
|
677 |
|
21,490 |
|
27.2 |
% |
|||||||||
36.3 |
% |
36.3 |
% |
31.0 |
% |
31.0 |
% |
36.3 |
% |
36.3 |
% |
29.8 |
% |
29.8 |
% |
||||||||||||||
| Other comprehensive income (loss) | 137 |
|
4,336 |
|
(12 |
) |
(370 |
) |
- |
|
137 |
|
4,336 |
|
(118 |
) |
(3,749 |
) |
- |
|
|||||||||
| Total comprehensive income (loss) | 998 |
|
31,678 |
|
535 |
|
16,982 |
|
86.5 |
% |
998 |
|
31,678 |
|
559 |
|
17,741 |
|
78.6 |
% |
|||||||||
| Net income attributable to: | |||||||||||||||||||||||||||||
| Shareholders of the parent | 851 |
|
26,996 |
|
550 |
|
17,460 |
|
54.6 |
% |
851 |
|
26,996 |
|
672 |
|
21,327 |
|
26.6 |
% |
|||||||||
| Non-controlling interests | 10 |
|
346 |
|
(3 |
) |
(108 |
) |
- |
|
10 |
|
346 |
|
5 |
|
163 |
|
111.6 |
% |
|||||||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||||||||||||||
| Shareholders of the parent | 987 |
|
31,332 |
|
538 |
|
17,090 |
|
83.3 |
% |
987 |
|
31,332 |
|
554 |
|
17,578 |
|
78.2 |
% |
|||||||||
| Non-controlling interests | 11 |
|
346 |
|
(3 |
) |
(108 |
) |
- |
|
11 |
|
346 |
|
5 |
|
163 |
|
111.6 |
% |
|||||||||
| Earnings per share-basic | 0.069 |
|
2.19 |
|
0.045 |
|
1.43 |
|
0.069 |
|
2.19 |
|
0.055 |
|
1.74 |
|
|||||||||||||
| Earnings per ADS (2) | 0.345 |
|
10.95 |
|
0.225 |
|
7.15 |
|
0.345 |
|
10.95 |
|
0.274 |
|
8.70 |
|
|||||||||||||
| Weighted average number of shares | |||||||||||||||||||||||||||||
| outstanding (in millions) | 12,306 |
|
12,206 |
|
12,306 |
|
12,283 |
|
|||||||||||||||||||||
| Notes: | |||||||||||||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2022 exchange rate of NT $31.74 per U.S. Dollar. | |||||||||||||||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||
For the Three-Month Period Ended |
For the Nine-Month Period Ended |
||||||||||||||||
September 30, 2022 |
September 30, 2022 |
||||||||||||||||
US$ |
NT$ |
% |
US$ |
NT$ |
% |
||||||||||||
| Operating revenues | 2,375 |
|
75,392 |
|
100.0 |
% |
6,644 |
|
210,870 |
|
100.0 |
% |
|||||
| Operating costs | (1,251 |
) |
(39,728 |
) |
(52.7 |
%) |
(3,599 |
) |
(114,230 |
) |
(54.2 |
%) |
|||||
| Gross profit | 1,124 |
|
35,664 |
|
47.3 |
% |
3,045 |
|
96,640 |
|
45.8 |
% |
|||||
| Operating expenses | |||||||||||||||||
| - Sales and marketing expenses | (33 |
) |
(1,061 |
) |
(1.4 |
%) |
(102 |
) |
(3,230 |
) |
(1.5 |
%) |
|||||
| - General and administrative expenses | (77 |
) |
(2,428 |
) |
(3.2 |
%) |
(228 |
) |
(7,235 |
) |
(3.4 |
%) |
|||||
| - Research and development expenses | (104 |
) |
(3,304 |
) |
(4.4 |
%) |
(301 |
) |
(9,547 |
) |
(4.5 |
%) |
|||||
| - Expected credit impairment loss | (0 |
) |
(1 |
) |
(0.0 |
%) |
(0 |
) |
(2 |
) |
(0.0 |
%) |
|||||
| Subtotal | (214 |
) |
(6,794 |
) |
(9.0 |
%) |
(631 |
) |
(20,014 |
) |
(9.4 |
%) |
|||||
| Net other operating income and expenses | 40 |
|
1,287 |
|
1.7 |
% |
127 |
|
4,029 |
|
1.9 |
% |
|||||
| Operating income | 950 |
|
30,157 |
|
40.0 |
% |
2,541 |
|
80,655 |
|
38.3 |
% |
|||||
| Net non-operating income and expenses | 69 |
|
2,189 |
|
2.9 |
% |
29 |
|
916 |
|
0.4 |
% |
|||||
| Income from continuing operations before income tax |
1,019 |
|
32,346 |
|
42.9 |
% |
2,570 |
|
81,571 |
|
38.7 |
% |
|||||
| Income tax expense | (158 |
) |
(5,004 |
) |
(6.6 |
%) |
(399 |
) |
(12,673 |
) |
(6.0 |
%) |
|||||
| Net income | 861 |
|
27,342 |
|
36.3 |
% |
2,171 |
|
68,898 |
|
32.7 |
% |
|||||
| Other comprehensive income (loss) | 137 |
|
4,336 |
|
5.7 |
% |
63 |
|
2,009 |
|
0.9 |
% |
|||||
| Total comprehensive income (loss) | 998 |
|
31,678 |
|
42.0 |
% |
2,234 |
|
70,907 |
|
33.6 |
% |
|||||
| Net income attributable to: | |||||||||||||||||
| Shareholders of the parent | 851 |
|
26,996 |
|
35.8 |
% |
2,147 |
|
68,131 |
|
32.3 |
% |
|||||
| Non-controlling interests | 10 |
|
346 |
|
0.5 |
% |
24 |
|
767 |
|
0.4 |
% |
|||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||
| Shareholders of the parent | 987 |
|
31,332 |
|
41.6 |
% |
2,210 |
|
70,139 |
|
33.3 |
% |
|||||
| Non-controlling interests | 11 |
|
346 |
|
0.4 |
% |
24 |
|
768 |
|
0.3 |
% |
|||||
| Earnings per share-basic | 0.069 |
|
2.19 |
|
0.175 |
|
5.54 |
|
|||||||||
| Earnings per ADS (2) | 0.345 |
|
10.95 |
|
0.873 |
|
27.70 |
|
|||||||||
| Weighted average number of shares outstanding (in millions) |
12,306 |
|
12,291 |
|
|||||||||||||
| Notes: | |||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2022 exchange rate of NT $31.74 per U.S. Dollar. | |||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||
| Consolidated Condensed Statement of Cash Flows | |||||
| For The Nine-Month Period Ended September 30, 2022 | |||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||
| US$ | NT$ | ||||
| Cash flows from operating activities : | |||||
| Net income before tax | 2,570 |
|
81,571 |
|
|
| Depreciation & Amortization | 1,061 |
|
33,692 |
|
|
| Share of loss of associates and joint ventures | 112 |
|
3,557 |
|
|
| Income tax paid | (137 |
) |
(4,333 |
) |
|
| Changes in working capital & others | (301 |
) |
(9,582 |
) |
|
| Net cash provided by operating activities | 3,305 |
|
104,905 |
|
|
| Cash flows from investing activities : | |||||
| Decrease in financial assets measured at amortized cost | 898 |
|
28,488 |
|
|
| Acquisition of property, plant and equipment | (1,392 |
) |
(44,176 |
) |
|
| Acquisition of intangible assets | (73 |
) |
(2,316 |
) |
|
| Others | (12 |
) |
(379 |
) |
|
| Net cash used in investing activities | (579 |
) |
(18,383 |
) |
|
| Cash flows from financing activities : | |||||
| Decrease in short-term loans | (55 |
) |
(1,759 |
) |
|
| Redemption of bonds | (339 |
) |
(10,763 |
) |
|
| Proceeds from long-term loans | 22 |
|
710 |
|
|
| Repayments of long-term loans | (367 |
) |
(11,650 |
) |
|
| Increase in guarantee deposits | 484 |
|
15,374 |
|
|
| Cash distributed from additional paid-in capital | (1,180 |
) |
(37,446 |
) |
|
| Others | (79 |
) |
(2,535 |
) |
|
| Net cash used in financing activities | (1,514 |
) |
(48,069 |
) |
|
| Effect of exchange rate changes on cash and cash equivalents | 302 |
|
9,574 |
|
|
| Net increase in cash and cash equivalents | 1,514 |
|
48,027 |
|
|
| Cash and cash equivalents at beginning of period | 4,178 |
|
132,622 |
|
|
| Cash and cash equivalents at end of period | 5,692 |
|
180,649 |
|
|
| Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2022 exchange rate of NT $31.74 per U.S. Dollar. | |||||
1Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending September 30, 2022, the three-month period ending June 30, 2022, and the equivalent three-month period that ended September 30, 2021. For all 3Q22 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the September 30, 2022 exchange rate of NT$ 31.74 per U.S. Dollar.
2 Revenue in this section represents wafer sales
3 Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
4 Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221026005486/en/
Contacts
Michael Lin / David Wong
UMC, Investor Relations
+ 886-2-2658-9168, ext. 16900
jinhong_lin@umc.com
david_wong@umc.com
